The Land of Opportunity
With the summer behind us Nick
Churton of Mayfair Office takes a look at how the property market
is shaping up this autumn.
consider that the property market is still over-valued by up to
20%. And that somehow it is tenously suspended above reality
by the slender threads of quantitative easing, very low
interest rates and a little market traction generated from central
London. These people predict a hard landing. But is that very
likely? Although there are doomsayers who predict more falling
property prices theirs is an overall view and each region will
behave differently: there may well be enough activity to ward off
further slippage. There certainly seems enough life in the
market generated by those making non-discretionary sales and
purchases. If this continues until the banks and other
lenders finally sort themselves out and do what they are supposed
to do, then another bump should be avoided.
But where is the
activity that we do have coming from? Buying and selling property
in this market is certainly not the exclusive province of the
fortunate: it is the exclusive province of the determined.
Few, in any part of the market, who don’t need to move home
are doing so. But there seem to be plenty of people whose
lives and circumstances are leading them to buy property. It
is this group that is keeping the market as buoyant as it is, and
these who in time will no doubt be very pleased that they acted
when they did, as this is a market of certain opportunity. To all
those politicos who insist we have a housing crisis this may all
come as a big surprise. They need to accept the fact that
what we really have is a crisis of mortgage lending coupled with
low confidence - it’s the economy, stupid. In some
respects a housing crisis may even be preferable to the perfect
storm we have now. Which is why our leaders may be calling it
determined souls who are coming into the market there are some
pitfalls to beware of. Sellers with too ambitious an asking price
and unreasonable expectations in the prevailing conditions will
really find things tricky.
remember that while the market favours them it does not favour them
completely. Realistic offers will be treated, at worst, with polite
encouragement. Unreasonable offers will not.
But treat buying,
selling and others – including us estate agents if you will!
- with a little understanding and there really are some great deals
to be done, even in this market. If you are determined, then
welcome to the land of opportunity.
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